Berberis Posted March 21, 2016 Share Posted March 21, 2016 I disagree - companies set their prices on what they think we will be daft enough to pay (ie: what they can get away with). Power companies are a good example. So are the major supermarkets when compared to Aldi and Lidl. Power companies are a very different situation and not comparable to the high street. You will find most shops offer much the same price for their goods. This is due to the market force. It does not drive prices up, it drives them down. The less competition the less pressure to compete. Energy has only a few players, while the high street has countless options to the consumer. This VAT goes into profits and most businesses know they need to make X amount of profit to keep trading. The VAT does not simply go into the back pocket of the business owner. Its pretty cynical to think that they just keep it. ---------- Post added 21-03-2016 at 16:10 ---------- What VAT money? The VAT goes to the government not the business. Go back and read the thread. Link to comment Share on other sites More sharing options...
Quik Posted March 21, 2016 Share Posted March 21, 2016 Power companies are a very different situation and not comparable to the high street. You will find most shops offer much the same price for their goods. This is due to the market force. It does not drive prices up, it drives them down. The less competition the less pressure to compete. Energy has only a few players, while the high street has countless options to the consumer. This VAT goes into profits and most businesses know they need to make X amount of profit to keep trading. The VAT does not simply go into the back pocket of the business owner. Its pretty cynical to think that they just keep it. ---------- Post added 21-03-2016 at 16:10 ---------- Go back and read the thread. I did, none of the replies bear any resemblance to reality. For a start hot drinks are always standard rated so charging extra to have them on the premises is nothing to do with VAT. The only area where VAT differs between eat in and out are certain cold foods. However in that case you would only charge VAT on eat in orders, charging it on the eat out ones is fraud and a criminal offense. So there is no 'VAT money' subsidising profits as you stated. Link to comment Share on other sites More sharing options...
geared Posted March 21, 2016 Share Posted March 21, 2016 When you have to prove you are flying with your boarding pass, even though you are in the departure lounge and you cant get there without one. The retailer is actually looking for whether or not they can recoup the VAT from your purchase. Yea but everyone knows full well they just pocket the VAT money and don't bother passing it onto the customers Link to comment Share on other sites More sharing options...
Berberis Posted March 21, 2016 Share Posted March 21, 2016 (edited) Yea but everyone knows full well they just pocket the VAT money and don't bother passing it onto the customers Everyone knows means no one really knows. Market forces drive proves and profit. ---------- Post added 21-03-2016 at 16:27 ---------- I did, none of the replies bear any resemblance to reality. For a start hot drinks are always standard rated so charging extra to have them on the premises is nothing to do with VAT. The only area where VAT differs between eat in and out are certain cold foods. However in that case you would only charge VAT on eat in orders, charging it on the eat out ones is fraud and a criminal offense. So there is no 'VAT money' subsidising profits as you stated. Maybe the retailer does not understand the VAT Notice 701/14: food. Someone should maybe challenge them for the reason for the extra charge. *I did think that hot drinks were part of the standard rate not zero. The VAT added to profits was using the Currys example of people flying out of an airport and why the retailer asks for your boarding pass. I used this as an example and this is true as I listened to a spokesman for Currys discuss this on the radio approx a year ago. I (wrongly) assumed this was also the case for VAT on hot food. Edited March 21, 2016 by Berberis Link to comment Share on other sites More sharing options...
rodnreeluk Posted March 21, 2016 Share Posted March 21, 2016 Power companies are a very different situation and not comparable to the high street. You will find most shops offer much the same price for their goods. Exactly - They charge what they can get away with. How are power companies different from the big High Street chains? Link to comment Share on other sites More sharing options...
Quik Posted March 21, 2016 Share Posted March 21, 2016 Everyone knows means no one really knows. Market forces drive proves and profit. ---------- Post added 21-03-2016 at 16:27 ---------- Maybe the retailer does not understand the VAT Notice 701/14: food. Someone should maybe challenge them for the reason for the extra charge. *I did think that hot drinks were part of the standard rate not zero. It's got nothing to do with vat. As I said hot drinks are always 20% rated regardless of eat in or takeaway so the charge is nothing to do with VAT. Plenty of companies charge different rates for eat in and takeaway, it reflects differing cost bases and capacity issues for the two offerings. Link to comment Share on other sites More sharing options...
smiggs Posted March 21, 2016 Share Posted March 21, 2016 Isnt there a VAT cost to eating in as opposed to take away? No as it's served hot there's no difference in VAT charge. If they gave you the constituent parts of coffee they wouldn't have to VAT the beans. Link to comment Share on other sites More sharing options...
Berberis Posted March 21, 2016 Share Posted March 21, 2016 It's got nothing to do with vat. As I said hot drinks are always 20% rated regardless of eat in or takeaway so the charge is nothing to do with VAT. Plenty of companies charge different rates for eat in and takeaway, it reflects differing cost bases and capacity issues for the two offerings. Are you even reading what I wrote. I conceded I was incorrect. *I did think that hot drinks were part of the standard rate not zero. ---------- Post added 21-03-2016 at 16:42 ---------- No as it's served hot there's no difference in VAT charge. If they gave you the constituent parts of coffee they wouldn't have to VAT the beans. I have already conceded this point as I was wrong. I assumed Hot Drinks where also VAT chargeable such as hot food. ---------- Post added 21-03-2016 at 16:46 ---------- Exactly - They charge what they can get away with. How are power companies different from the big High Street chains? The high street has direct competition. Link to comment Share on other sites More sharing options...
geared Posted March 21, 2016 Share Posted March 21, 2016 Everyone knows means no one really knows. Are they not to be under investigation soon, the news made a big thing of it at the end of last year??? Link to comment Share on other sites More sharing options...
rodnreeluk Posted March 21, 2016 Share Posted March 21, 2016 The high street has direct competition.Are you brain dead? The power companies are SUPPOSED to compete with each other. If that isn't direct competition, what is? Link to comment Share on other sites More sharing options...
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